SunPower Adds 20.4K Customers in Q2 Amid Softening Residential Solar Market

SunPower Corp SPWR reported second-quarter FY23 revenue growth of 11% year-on-year to $463.85 million, beating the consensus of $462.85 million.

SPWR added 20,400 customers. Non-GAAP gross margin declined by 750 basis points to 13.7% as costs jumped 19%.

Adjusted EPS loss of $(0.13) missed the consensus loss of $(0.03). Adjusted EBITDA declined to $(2.8) million, down from $11.8 million a year ago.

SunPower held $114.1 million in cash and equivalents and used $(17.3) million in operating cash flow.

"In the second quarter, we saw a softer market for residential solar taking shape as higher interest rates create near-term stress on the value proposition in regions with comparatively lower utility rates such as the Southeast and Southwest...We expect the value of solar will continue to increase as equipment prices decline, tax credit programs are implemented, and retail utility rates continue to rise," said Peter Faricy, SunPower CEO. 

Outlook: SunPower cut its 2023 adjusted EBITDA guidance to $55 million – $75 million (prior $125 million-$155 million) and 70,000–90,000 incremental customers (prior 90,000-110,000).

Price action: SPWR shares traded lower by 0.91% at $9.78 on the last check Tuesday.